Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 23

Continuing the previous example, the sale of Today's Telecommunications’ pager division, which is a component of the entity, closed in the year subsequent to the fiscal year in which the assets and liabilities were classified as held‐for‐sale.

 The actual sales price less costs to sell was $9,725.

 The net carrying value of the assets and liabilities on the date of sale was $12,225.

 The loss from operations from the end of the fiscal year to the date of sale was $2,045.

 The tax rate is 40%.

The income statement presentation of discontinued operations would be:

Discontinued operations (Note X)
Loss from operations of discontinued division, net of tax of $818	1,227
Gain on disposal of discontinued division, net of tax of $310	465
Loss on discontinued operations	762

The loss from operations of the discontinued pager division is the $2,045 less the tax effects of $818 ($2,045 × 40%). The loss on disposal is the difference between the carrying value of the division and its sales price less the loss recognized in the prior period. The carrying value of the division was $12,225; the sales price less costs to sell was $9,725, for an actual loss of $2,500. The loss recognized in the prior period was $3,275, so an adjustment of $775 ($2,500 less $3,275) is necessary. The tax effects on the adjustment are $310 ($775 × 40%), so the net adjustment is a gain of $465 ($775 – $310).